Dodge City times. [volume] (Dodge City, Kan.) 1876-1892, 1887-12-15
TIE TREASURY.

Secretary Fairchiid Submits His Annual
Report-TariT Reduction, the Surplus
and National Banks Discussed.
WASHINGTON, Dec. S.-The Secretary of
the Treasury in his annual report submit
ted to Congress yesterday says that the
total ordinary receipts of the Government
during the year ended June 81, 1857, were
b371, 403, 27S and that the total ordinary ex-
pcnditures were S3l5. 3S5. 42S, leaving q sur
plus Of S55, SCI, SAG, with which an amount
drawn from the cash balance in the treas
ury of $24, 455 $50, makes a total surplus OF
go 023, $50, which was offered to the re-
demption of bonds. The receipts for the
year show an increase of S34, 963, $50 over
the year before and the expenditures show
an increase OF So, 40 04l; for the present
year the revenues are estimated at $685.
930,OC0 and the expenditures at S3l6, 81, 7S5,
leaving an estimated surplus OF s6j, s., pa,
June 30 1888. The Secretary estimates the
surplus for the year 1889 at SIS, 469 206
In regard TO the surplus revenue, the
Secretary says: Taxation and currency
reform were the questions which my dis
t,nguished predecessor deemed TO be OF
most pressing Importance, and TO them he
devoted large part of the two annual re-
ports which he made to Congress- In those
reports he stated his honest convictions
with a vigor and ooldneSs which together
with the ability and fairness that he showed
in the general management of that depart
ment have given him high place among
statesmen and financiers. / find the same
subject to be still the most important OF all
those to which it Is my duty to call your at
tention, and it is no. necessary to do other
wise than follow the general lines laid
down by him in treating them. Circum-
stances have heightened the immediate
urgency of taxation reform as affecting the
surplus revenues Of the Government The
urgency is so great that the question Of
surplus revenues demands the earnest at
tention OF the legislative and executive
branches of the Government"
The Secretary then gives the following
ways in which the receipts and expendi-
lures Of the Government may be made
about equal: BY the purchase of the inter
est-bearung debt of the Government; larger
expenditures by the Government for other
purposes than the purchase Of bonds, SO
that they shall each year equal the taxa
ton or that year; reduction of the revenue
from taxation to the amount actually re-
quired TO meet necessary expenses All Of
these expedients have in common the one
merit OF preventing the arrangement to
business which must FOLLOW boarding or
locking up in the treasury the circulating
medium Of the people
In regard to the first plan the Secretary
agrees with the President in his message on
the same subject. He then sayr: Il can
not believe that it will adopt the second ex-
pedient, viz, the enlargement of Govern
Ment expenses simply to eXpend money
raised by taxation when the public veal
does not otherwise call for the expenditure
Reduction of the revenue from taxation is
the only fit remedy for the evils which
threaten the country. This may be &C
cOmplished in various ways. Ono is TO re-
duce or abolish internal revenue taxation.
Ia favor of this is the fact that in a small
part Of tho Southern States the internal tax
ON liquors and tobacco is thought TO be OPP
prcssive and is oGious to the people Of
those regions. AMI the further fact that
by its reduction the expenses of its collec-
ton might be somewhat reduced. The
chief cause for the prejudice against this
tax seems to be that, as there was no such
lax before the war for the Union, it was
looked upon as a reminder of the measures
adopted TO raise money to carry On the war
and which ought not to be continued in
time OF peace, and as interfering IN some
way with the natural right OF mankind to
grow grain and tobacco and manufacture
therefrom spirits, cigars, snuff and the
various forms Of merchandise tobacco
''Of course taxation Of whisky and to-
bacco trespasseS no more upon the natural
rights Of man than does the taxation OF his
clothing, of his bedding, of every imple-
mcnt which he uses in the cultivation of
his grain and tobacco and in the distilla-
ton aud manufacture Of the same. The
burden of the one tax is direct, known.
fixed; the whole of it goes into the Govern
ment treasury. The burden Of the other
is indirect, unknown aud only a portion of
1t comes into the treasury. IL reaches the
farmer or diStiller increased by the profit
upon itself which every merchant must
take as the clothing or tools pass through
his hands on their journey to them from the
foreign or domestic manufacturer. Tax
alton there must be. The choice is be-
tween kinds Of taxation. Each man can de.
eide for himself, If he will examine the sub
ject free from prejudice, which is the least
burdensome for hun, for his family and for
his neighbors, and which is in the end bet
ter for the whole country. That internal
taxation If spirits and tobacco began dur
ang the war is not q reason why 1t should
Ike done away with now il it be III itself
wise. SO the fact that the rates of customs
taxation We're raised during the same war
far higher than ever before in our history
aud have been continued until now ought
not to determine the manner Of their treat
ment; this Should rather depend upon what
is just and eXpedient at the present time.
No prejudice nor sentimentality should
have place IN the consideration of questions
Of taxation.
"After the question of annual surplus
revenues Is disposed of there still remains
the surplus money which is in the treasury
20 be considered. This surplus amounted
on December l to sos, 225S, 1Ol. l9, and will
probably amount 10 $40 Oo0,O UO on June 30
next One use which can be made of this
money Is to diminish taxation to such an
extent that the annual revenues will be |
less for some years to come than the APP
preparations; thus the accumulated sur |
plus would be used for ordinary expenses |
and the people would gain the greatest |
possible good from il. Doubtless by the |
time this money was spent in pur-
suance Of this plan, the revenues would |
have so increased as to be equal to |
proper annual expenses. Experience |
teaches that this would probably be the |
case. In the meantime "A portion of this |
money could lie ia banks. where it would |
be available for the business OF the coun-
try, and as upon withdrawal from them it |